Court Convicts Ex-NHIS Boss for Breaching Cash Transaction Law, Fines Him ₦10 Million
In a mixed verdict handed down by the Federal High Court in Ikoyi, Lagos, former Executive Secretary of the National Health Insurance Scheme (NHIS), Olufemi Thomas, has been convicted for violating Nigeria’s law on cash transaction limits—but acquitted of all money laundering charges.
Justice Olayinka Faji, who presided over the case, found Thomas guilty on a single count—making a cash payment above the legally permitted threshold of ₦5 million. The court ruled that while the transaction could not be linked to any criminal activity, it nonetheless breached the provisions of the Money Laundering (Prohibition) Act regarding cash handling.
“The money was not proven to be proceeds of unlawful activity,” the judge clarified. “However, paying in excess of the cash limit is, in itself, a violation of the law.”
Thomas was ordered to pay a fine of ₦10 million in lieu of imprisonment and is barred from travelling abroad until the fine is fully paid.
In a twist that tilts the scales partially in Thomas’s favor, the court acquitted him of five other counts bordering on money laundering and unlawful enrichment, citing the Economic and Financial Crimes Commission’s (EFCC) failure to prove its case beyond reasonable doubt. Justice Faji noted that the EFCC had admitted to not verifying key claims made by the defendant, and had failed to establish that the former NHIS boss benefited unlawfully from the funds in question.
As part of the ruling, the EFCC was ordered to return all seized funds to Thomas within 14 days—provided he pays the court-imposed fine.
The court also delivered a guilty verdict against the second defendant, Kabiru Sidi, who was convicted on the sole count against him: falsely claiming ownership of $2.1 million during the EFCC’s investigation.
Thomas and Sidi were initially arraigned on June 28, 2017, on a revised seven-count charge that included conspiracy, false statements, and unlawful possession of cash totaling over $2.1 million.
According to a statement from EFCC’s Head of Media and Publicity, Dele Oyewale, the prosecution alleged that the funds were suspiciously moved in cash—contravening anti-money laundering laws.
During the trial, the EFCC called six witnesses to support its case. Thomas, for his part, maintained that the funds were legitimately earned through his agricultural ventures, a claim supported by financial statements presented in court.
Prosecution counsel and Senior Advocate of Nigeria, Ekele Iheanacho, argued that the case revolved around the concealment of transactions, stressing that any financial movement outside banking channels undermines the intent of anti-money laundering laws. He urged the court to convict both defendants.
While the judge ultimately disagreed with most of the prosecution’s arguments in Thomas’s case, the EFCC has signaled its intent to appeal the decision.